Top employee overtime claims
Employee overtime claims are on the rise and the Department of Labor has issued warnings to a number of industries, including food service, hospitality and childcare, threatening to investigate and penalize any employers found in violation of the Fair Labor Standards Act (FLSA).
Employers and business managers might understand that dealing with investigations and being forced to pay penalties and back wages can add up – much faster than paying employees for their overtime in the first place. However, they may not know just how much it can cost.
For example, UPS was slammed with a $100 million lawsuit in 2009 by sales employees who claimed they were misclassified as administrative workers so the shipping giant wouldn’t have to pay them for overtime employee attendance.
In early 2012, IBM paid 32,000 workers $65 million to settle a dispute in which workers said they were required to work overtime without receiving proper remuneration (time-and-a-half the regular rate) according to the FLSA.
Starbucks was also found in violation of FLSA overtime provisions for misclassifying workers and paid $18 million to settle employee claims.
Employers in low-paying industries should take extra care when establishing payroll policies and investing in timekeeping services to ensure they are upholding the rights employees are owed.
Employers and business managers might understand that dealing with investigations and being forced to pay penalties and back wages can add up – much faster than paying employees for their overtime in the first place. However, they may not know just how much it can cost.
For example, UPS was slammed with a $100 million lawsuit in 2009 by sales employees who claimed they were misclassified as administrative workers so the shipping giant wouldn’t have to pay them for overtime employee attendance.
In early 2012, IBM paid 32,000 workers $65 million to settle a dispute in which workers said they were required to work overtime without receiving proper remuneration (time-and-a-half the regular rate) according to the FLSA.
Starbucks was also found in violation of FLSA overtime provisions for misclassifying workers and paid $18 million to settle employee claims.
Employers in low-paying industries should take extra care when establishing payroll policies and investing in timekeeping services to ensure they are upholding the rights employees are owed.
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